CGT declaration to HMRC on selling BTL - quick Q

[venusi]

Hi, new poster here - had a quick search through old CGT posts and can't find the answer to my question.

I've just sold my BTL and am aware of the 60 day CGT declaration rule - my question (and I suspect the answer is yes but thought I'd check for views) is if I know that my capital gain is less than the annual CGT allowance from my own calcs, do I still need to go through the rigmarole of filling in all the details on HMRC's CGT calculator now, just to show that I don't owe them anything, or can I leave it until I fill out my tax return for 2021/22 properly after the tax year ends?

I do appreciate HMRC won't know I don't owe them anything unless I lay it out, but it just feels a bit daft to be doing it twice for no obvious benefit to anyone, although this is HMRC we're talking about so I guess there doesn't have to be rhyme or reason!

Thanks

[Burwood]

venusi said:

Hi, new poster here - had a quick search through old CGT posts and can't find the answer to my question.

I've just sold my BTL and am aware of the 60 day CGT declaration rule - my question (and I suspect the answer is yes but thought I'd check for views) is if I know that my capital gain is less than the annual CGT allowance from my own calcs, do I still need to go through the rigmarole of filling in all the details on HMRC's CGT calculator now, just to show that I don't owe them anything, or can I leave it until I fill out my tax return for 2021/22 properly after the tax year ends?

I do appreciate HMRC won't know I don't owe them anything unless I lay it out, but it just feels a bit daft to be doing it twice for no obvious benefit to anyone, although this is HMRC we're talking about so I guess there doesn't have to be rhyme or reason!

Thanks

If you file Self Assessment or the total sale ££ is more than 4X your annual allowance then yes, you must disclose it

[venusi]

Thanks Burwood, just to clarify you're saying that if I file Self Assessment (I do, as a BTL landlord) I must disclose it now rather than disclose it in my annual assessment when that's due?

[Burwood]

venusi said:

Thanks Burwood, just to clarify you're saying that if I file Self Assessment (I do, as a BTL landlord) I must disclose it now rather than disclose it in my annual assessment when that's due?

I assume you have a Govt gateway User account?

If so you can login and create a 'capital gains tax on UK Property Account'

Yes you need to sort this out within the 60 days. It's a separate filing from SA

[Eric Mc]

venusi said:

Thanks Burwood, just to clarify you're saying that if I file Self Assessment (I do, as a BTL landlord) I must disclose it now rather than disclose it in my annual assessment when that's due?

I am not 100% sure that is the case but, to be on the safe side, I would go ahead and report the CGT within the 60 days time limit - even if there is no CGT liability arising.

Please note that, if the property completion occurred before 27 October 2021, the reporting (and payment) period was only 30 days.

One of the significant problems with this new(ish) system of early reporting of CGT is that it is very difficult (if not impossible) to calculate a CGT liability accurately when you are part way through a tax year.

If there is a gain and a CGT liability arising, how the CGT is calculated is determined by taking into account your other income from non CGT events - such as your salary, pension, rental income, partnership profit share, dividends, sole trader profits (or losses) etc.

Therefore, when the tax year in which the gain arises comes to an end, you will have to recalculate the CGT liability, only this time accurately, and then notify HMRC again so that you can claim back any CGT overpaid or pay any extra CGT due (if you undercalculated when making the electronic submission earlier in the tax year).